Rs 728 crore order book: Debt-free civil construction stock in green as Board allots 9,37,760 equity shares on conversion of warrants!
MICL has invested over Rs 1,000 crore in its real estate projects and generated a cash flow from operations of Rs 321 crores during the quarter.
The Allotment Committee of Man Infraconstruction Limited approved the conversion of 9,37,760 convertible warrants into an equal number of equity shares. This conversion was made at a preferential basis upon receipt of Rs. 10,90,14,600 at the rate of Rs 116.25 per warrant. The allotted equity shares rank pari-passu with the existing equity shares of the company. Following this allotment, the subscribed and paid-up capital of the company increased from Rs 74,25,00,810 to Rs 74,43,76,330. It is important to note that 3,41,08,340 warrants remain outstanding for conversion, and their holders have 18 months from the date of allotment to convert them into equity shares by paying the remaining 75 per cent of the issue price.
Today, shares of this civil construction company gained 1.6 per cent to Rs 197.70 per share from its previous closing of Rs 194.65 per share. The stock’s 52-week high is Rs 249.40 and its 52-week low is Rs 136.95. As of June 2024, the company’s order book stands at Rs 728 crore. The company has a market cap of over Rs 7,000 crore and has delivered good profit growth of 48.3 per cent CAGR over the last 5 years. The company's shares have an ROE of 25 per cent and an ROCE of 30 per cent.
Man Infraconstruction Ltd, a Mumbai-based company listed on both NSE (MANINFRA) and BSE (533169), specializes in EPC (Engineering, Procurement, and Construction) and Real Estate Development. With a 50-year EPC history and strong execution in ports, residential, commercial, industrial, and road sectors across India, ManInfra also excels in Mumbai's real estate market, delivering high-quality residential projects on time. Its construction management expertise and resources make it a capable real estate developer.
On August 20, 2024, the promoter of the company Mansi P. Shah bought 50,000 shares or 0.01 per cent stake via the open market. Post this acquisition the promoters hold 25,00,20,859 shares or 67.35 per cent stake in the company as of August 2024.
MICL Delivers Strong Q1FY25 Performance
MICL has reported robust performance in the first quarter of the financial year 2025. The company achieved a sales value of Rs 691 crore, surpassing its annual sales of Rs 744 crore in FY24. This impressive feat is coupled with a remarkable increase in consolidated PBT margins from 21.7 per cent in Q1FY24 to 30.7 per cent in Q1FY25.
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Key Highlights and Strategic Initiatives
MICL has made significant strides during the quarter. A key highlight includes acquiring an ultra-luxury residential project in BKC, spanning 5.0 lakh sq. ft. with a saleable carpet area of 1.5 lakh sq. ft. The project is slated for launch in FY25 with an estimated delivery timeline of three years. Additionally, the company has achieved a 50 per cent sales milestone for its 'Aaradhya OnePark' project in Ghatkopar East within just six months of launch.
Furthermore, MICL has secured an Occupation Certificate for the commercial tower, 'Gateway', in its Atmosphere O2 project, delivered ahead of schedule within 3.5 years. With a total revenue potential of over Rs 1,650 crore, this project is nearing complete sell-out. The company is also gearing up for the delivery of two more projects, 'Aaradhya Evoq' in Juhu and 'Tower F' of Atmosphere O2, in the second quarter of FY25. MICL's strong brand presence is evident in the 99 per cent inventory sell-out across its completed projects.
Financial Performance and Outlook
MICL's financial health is robust, with a total income of Rs 368.4 crores and a PBT of Rs. 113.2 crores in Q1FY25. The company's PAT stands at Rs 77.5 crore, and it maintains a net-debt-free position with a cash and bank balance of Rs 487 crores. MICL has invested over Rs 1,000 crore in its real estate projects and generated a cash flow from operations of Rs 321 crores during the quarter.
With a strong project pipeline and a solid financial foundation, MICL is well-positioned for future growth. The company's prestigious projects, such as Aaradhya Avaan in Tardeo and Aaradhya OnePark in Ghatkopar, have significant revenue potential. Upcoming projects in Goregaon, Marine Lines, BKC, Pali Hill, Vile Parle and Dahisar further solidify MICL's position as a leading real estate developer in Mumbai.
Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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